The Bill is a continuation of Labour's desire to look like the reasonable one who can cater to both sides. Obviously it is a tool to keep LGBT Labour onside and donors etc.
At the same time they also really need to keep the Terfy parts of the party and Muslims/Catholics happy.
Which is why it is likely to be either a Frankenstein monster of legislation if it ever appears or more likely a ghostly apparition with no substance.
Ironically I think the process is way better for our side than the TAs. Remember Stonewall are desperate for continuing government funds, so they can't criticise them too much. This has led them to put themselves in a weak position. Say the bill forbids the fictional 10,000s of gay exorcisms being carried out. Labour can claim to have saved lots of gay people from a horror. The horror doesn't exist, but who cares. What can Stonewall say? Well we meant you to lock up the nasty women who say things? Not stop the very real wave of gay exorcism you awful people. Whatever the bill does Stonewall has to claim it as a win. Because they have to claim they have real power to keep the money train going. Not just from government, but from business academia etc. Notice how their criticisms of Cass are muted. They know they can't win so they avoid the conversation.
However the process is going to anger the many TA extremists because it isn't going to make misgendering a capital offence. So they will continue to attack Labour and Stonewall. It will be interesting to see what SNP, Lib Dems and Greens say. It will put them on the spot. Will they try to add the Terf execution amendment. Or do nothing. The SNP have already passed the ball, because they know the ball is actually a ticking bomb which can't be dealt with.
Meanwhile our side can call out any flaws in the legislation and lobby against it. The House of Lords can put in amendments. Votes will happen. People will go on the record. Because we are actually independent and not motivated by cash any discussion and debate makes us stronger also because the other side are very dumb.